German technology company Freudenberg has discontinued its battery and fuel cell systems business for heavy-duty applications, dissolving the Freudenberg e-Power Systems (FEPS) unit as of January 1, 2026. The decision follows efforts in recent years to develop integrated battery systems, modules and complete fuel cell solutions, including the mid-2025 launch of the XWAVE maritime battery system and collaborations with ZF on truck fuel cell packs and with Flixbus on long-distance bus powertrains.
Going forward, Freudenberg will retain only its hydrogen components operations, which will be absorbed into the Sealing Technologies division. Claus Möhlenkamp, CEO of the Freudenberg Group, explained that system integration and module production for batteries and fuel cells will cease, while component manufacturing—particularly for hydrogen applications—will continue. Production of battery systems in the United States has ended, and the German-based hydrogen business has been closed except for the components unit.
Approximately 600 FEPS employees—mostly in the US—have been affected by this restructuring. The company noted that earlier reductions likely took place, given that the division employed around 800 people six months ago. About 70 positions will remain at a newly positioned hydrogen competence center in Munich, focusing on electrolysis and hydrogen production. Möhlenkamp indicated that rebuilding roles in this area could span a ten-year horizon, as fuel cell technology matures but market readiness remains limited.
Freudenberg’s 2025 annual report cited slow market development in the US, driven by weak demand for core applications, insufficient infrastructure—particularly for hydrogen—high costs, regulatory uncertainties and intense global competition. These challenges, combined with broader economic uncertainties, geopolitical tensions and currency volatility, weighed on demand in automotive and machinery sectors across Europe and North America.
Source: Freudenberg
